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BKV Corporation (BKV)
NYSE:BKV
US Market

BKV Corporation (BKV) AI Stock Analysis

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BK

BKV Corporation

(NYSE:BKV)

Rating:56Neutral
Price Target:
$23.00
▼(-0.09%Downside)
The most significant factor affecting BKV's stock score is its financial performance, which is currently challenged by declining revenues and negative profitability. While technical analysis shows some positive momentum, valuation metrics remain unattractive due to negative earnings. The joint venture for CCUS projects is a positive corporate event, offering potential long-term benefits.
Positive Factors
Cost Savings
BKV is focusing on leveraging technical learnings from the Barnett Zero project for future CCS projects, which could lead to incremental cost savings.
Market Positioning
BKV is well-positioned in the strengthening natural gas markets and is progressing on its CCUS strategy with joint venture funding and on-track projects.
Power Business Growth
The macro backdrop of ERCOT demand growth presents a significant opportunity for BKV's power business, with expected unprecedented demand growth.
Negative Factors
Power Segment Outlook
Investors were disappointed by BKV's 2025 outlook for the power segment EBITDA, which is at odds with the positive outlook for power demand and pricing in the state.
Production Guidance
The F2025 production guidance implies a ~2% year-over-year decline.
Upstream Growth Discipline
BKV remains disciplined on volume growth in the Upstream segment despite strong performance in 4Q24.

BKV Corporation (BKV) vs. SPDR S&P 500 ETF (SPY)

BKV Corporation Business Overview & Revenue Model

Company DescriptionBKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.
How the Company Makes MoneyBKV Corporation generates revenue primarily through the sale of oil and natural gas. The company earns income by extracting these resources from its owned or leased properties and selling them in the domestic and international markets. BKV's revenue streams include long-term contracts with utility companies, wholesale distributors, and industrial customers who rely on a consistent supply of natural gas and oil products. Additionally, the company may engage in strategic partnerships and joint ventures to expand its asset portfolio and enhance its distribution network, further contributing to its earnings. Factors such as market prices for oil and gas, production volumes, and operational efficiencies are significant contributors to the company's financial performance.

BKV Corporation Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q4-2024)
|
% Change Since: 20.02%|
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balance of achievements and challenges. The company showed strong performance in upstream operations and made significant advancements in their CCUS initiatives. However, financial performance in the Power JV and overall net losses were concerning. The sentiment is neutral as highlights and lowlights were balanced.
Q4-2024 Updates
Positive Updates
Impressive Upstream Performance
BKV's upstream business exceeded the midpoint of guidance by 5%, with fourth-quarter production at 774 million cubic feet equivalent per day and maintained a strong cash engine for the company.
Power Business Growth Potential
BKV's Power JV operates two combined cycle natural gas power plants with a capacity of 1,500 megawatts, providing growth opportunities in ERCOT due to increasing power demand, especially from data centers and AI.
Successful IPO
BKV made a significant milestone by debuting on the New York Stock Exchange, marking a major achievement for the company.
Advancements in CCUS Initiatives
BKV progressed with an additional FID on a new carbon capture project and is in exclusive negotiations with a global energy transition investor for a joint venture in their CCUS business.
Strong Financial Position
BKV maintained a strong balance sheet with a net leverage ratio of 0.65x and total liquidity of $436 million at year-end.
Negative Updates
Power JV Financial Performance
BKV's implied share of the Power JV's net loss during Q4 was about $17 million, with adjusted EBITDA of $0.5 million, indicating financial challenges in the power segment.
Net Loss for the Quarter
BKV reported a net loss of $57 million in the fourth quarter, primarily driven by net derivative losses of $58 million.
Moderate Power Demand and Prices
The fourth quarter saw moderate power demand and lower forward pricing due to mild weather and additional renewable generation, impacting the spark spread negatively.
Company Guidance
During the earnings call for BKV Corporation, several key metrics and plans were outlined for their fiscal year 2025. The company reported fourth quarter production of 774 million cubic feet equivalent per day, exceeding their guidance midpoint by 5%, with a development CapEx of $43 million. For 2025, they project a full year production range of 755 to 790 million cubic feet equivalent per day. BKV's CCUS initiatives are progressing, with their Barnett Zero project achieving a 97% reliability rate and injecting 173,325 metric tons of CO2 in 2024. They expect to inject between 120,000 and 170,000 metric tons of CO2 in 2025. Additionally, their Power JV, which includes two combined cycle natural gas power plants with a capacity of 1,500 megawatts, recorded a total generation of 7,400 gigawatt hours for the full year and is targeting a gross adjusted EBITDA range of $130 million to $170 million for 2025. The company also plans to invest between $320 million and $380 million in total capital expenditures, with approximately $130 million allocated to CCUS and other projects.

BKV Corporation Financial Statement Overview

Summary
BKV Corporation's financial performance in 2024 shows significant challenges, with declining revenues and negative profitability margins impacting overall financial health. The balance sheet remains robust with low leverage, but profitability issues are evident. Cash flow improvements are insufficient to counteract negative earnings, highlighting operational efficiency concerns.
Income Statement
45
Neutral
The income statement reveals a concerning trend with declining revenues and profitability. The gross profit margin for 2024 has decreased to 64.01% from 69.78% in 2023, while the net profit margin turned negative at -23.63% from 15.82% the previous year. The company reported negative EBIT and EBITDA margins for 2024, indicating operational inefficiencies. Revenue declined by 18.23% from 2023 to 2024, highlighting a challenging market environment or operational issues.
Balance Sheet
55
Neutral
The balance sheet reflects a relatively stable equity structure with a debt-to-equity ratio of 0.11 in 2024, down from 0.38 in 2023, indicating reduced leverage. However, the return on equity plummeted to -9.16% in 2024 from 8.25% in 2023, driven by the negative net income. The equity ratio improved to 69.89% in 2024, suggesting strong capital structure despite profitability challenges.
Cash Flow
50
Neutral
Cash flow analysis shows mixed results. The operating cash flow to net income ratio stands at -0.83 in 2024, reflecting negative net income's impact on cash generation. Free cash flow turned positive at $17.62 million in 2024 from a negative $69.53 million in 2023, but the free cash flow to net income ratio was -0.12, indicating insufficient free cash flow relative to net losses. The free cash flow growth rate is positive, but operational cash generation remains weak.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue680.65M604.53M739.28M1.66B889.53M122.53M
Gross Profit414.21M387.00M515.91M1.54B797.25M35.19M
EBITDA689.00K82.18M446.59M640.00M-74.02M87.54M
Net Income-182.95M-142.87M116.92M410.14M-138.21M-43.35M
Balance Sheet
Total Assets2.25B2.23B2.68B2.70B1.62B1.34B
Cash, Cash Equivalents and Short-Term Investments15.30M14.87M25.41M153.13M134.67M17.45M
Total Debt0.00165.00M541.66M617.04M181.41M35.14M
Total Liabilities769.21M671.51M1.21B1.51B865.89M357.35M
Stockholders Equity1.48B1.56B1.42B1.13B705.10M942.86M
Cash Flow
Free Cash Flow-17.15M17.62M-69.53M101.10M289.42M-521.71M
Operating Cash Flow121.91M118.54M123.08M349.19M358.13M-7.41M
Investing Cash Flow-58.00K36.07M-177.85M-865.57M-161.86M-513.99M
Financing Cash Flow-269.40M-304.81M66.71M534.83M-79.05M442.72M

BKV Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.32B13.3533.71%10.40%12.35%-18.66%
MNMNR
73
Outperform
$1.75B9.2512.64%21.42%
73
Outperform
$1.57B61.600.95%31.40%92.89%
HPHPK
72
Outperform
$1.30B11.747.09%1.55%-11.59%-28.62%
60
Neutral
£7.96B-2.81-8.53%7.17%-3.48%-99.82%
BKBKV
56
Neutral
$1.95B-13.36%2.24%-918.36%
$2.33B-43.50%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BKV
BKV Corporation
23.02
4.97
27.53%
DMLP
Dorchester Minerals
27.91
-0.13
-0.46%
NEXT
NextDecade
8.94
1.10
14.03%
TALO
Talos Energy
8.79
-2.86
-24.55%
HPK
HighPeak Energy
10.32
-4.24
-29.12%
MNR
Mach Natural Resources LP
14.75
-1.89
-11.36%

BKV Corporation Corporate Events

Shareholder Meetings
BKV Corporation Concludes Annual Stockholders Meeting
Neutral
Jun 20, 2025

On June 19, 2025, BKV Corporation held its Annual Meeting of Stockholders, where the final vote tabulation was delivered by The Carideo Group, Inc. on June 20, 2025. During this meeting, stockholders elected Class I directors to serve until the 2028 annual meeting and approved the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (BKV) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on BKV Corporation stock, see the BKV Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
BKV Corporation Reports Q1 2025 Financial Results
Neutral
May 9, 2025

On May 9, 2025, BKV Corporation announced its financial and operational results for the first quarter of 2025, reporting a net loss of $78.7 million but an adjusted net income of $35.0 million. The company highlighted a strategic joint venture with Copenhagen Infrastructure Partners to advance its CCUS projects, aiming to meet the growing demand for low-carbon energy solutions. Despite the net loss, BKV’s operational performance was strong, with significant contributions from its Power JV and progress in its closed-loop strategy.

Private Placements and FinancingBusiness Operations and Strategy
BKV Corporation Forms Joint Venture for CCUS Projects
Positive
May 8, 2025

On May 8, 2025, BKV Corporation‘s subsidiary, dCarbon Ventures, entered into a joint venture agreement with C Squared Solutions to form BKV dCarbon Project, LLC, aimed at developing CCUS projects. This strategic partnership involves a significant capital commitment from the investor, potentially reaching $1 billion, and establishes an exclusivity agreement for BKV to develop CCUS projects through the joint venture, impacting its operational focus and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 08, 2025